This is a further signal of Microsoft's increased interest in its hardware operations. For one, it's been consistently beefing up the Surface lineup of devices, which now has a large enough portfolio to cover almost all categories of devices (save for, notably, a smartphone).

Microsoft's store would literally be less than a minute away from Apple's.
Business Insider/Google Maps

With the exception of Apple — whose London flagship store would be less than a minute away from Microsoft's — Microsoft is the only other company that offers a complete range of hardware, software, and services, and has a large enough footprint, brand recognition, and wallet to put its foot forward in the retail space.

Cindy Rose, head of Microsoft in the UK, said in a statement: "We couldn't be happier to be opening a flagship store in the heart of central London at Oxford Circus, where two of the world's most iconic shopping streets meet.

"We know our customers and fans, whether they are from London, the broader UK or just visiting, will love our bold plans for the space.

"This will be so much more than just a great place to experience all that is possible with Microsoft, but a real hub for the community where we'll be bringing to life our passion for helping people explore their creativity through an ambitious program of workshops and training along with moments that work to unite the community."